Money growth slowing
Another sign that we are heading into a soggier patch for the economy.
Business credit was up by 4.3 per cent over the year to April 2018, which was the best result in 8 months according to the Reserve Bank of Australia.
However bank deposit growth was only 2.5 per cent, the slowest in 25½ years.
And broad money growth has dived to just 2.6 per cent, also the slowest growth in 25½ years (it was the same story for M3).
Tighter lending standards have flowed through to housing credit growth, at 0.4 per cent for the month and 5.1 per cent year-on-year.
As expected, these measures have impacted investor loans more than owner-occupier borrowing.
Investor credit growth slowed just 0.1 per cent in the month of April 2018, the slowest result since March 2016 when macroprudential measures struck last time around.
Owner-occupier credit growth has been less impacted, but here too the 0.6 per cent expansion was the slowest result since December 2016.
Loans to non-banks and intermediaries are plugging some of the gap, with growth rates still tracking at close to decade highs.
Loans to non-banks and intermediaries are plugging some of the gap, with growth rates still tracking at close to decade highs.
However, with residential construction set to slow in H2 2018, it looks as though PM/Treasurer Turnbull/ScoMo need a decisive plan of action, as these figures are pointing towards the electoral abyss.
